New Jersey Life Insurance Exam Practice Question
The premium mode defines the
Correct Answer: C
Rationale: The premium mode specifically refers to the frequency at which premium payments are made, such as monthly, quarterly, or annually. This impacts budgeting and cash flow for policyholders.
Option A, premium limit, refers to the maximum coverage amount, not the payment frequency. Option B, premium amount, indicates the total cost of the premium, which is different from how often it is paid. Option D, method of premium payment, could imply payment methods like credit card or bank transfer, but does not address the frequency aspect, which is the essence of the premium mode.
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